This essay critically analyses two elephantine rivals in the bundle bringing industry: Federal Express Corporation ( FedEx ) and United Parcel Service. Inc. ( UPS ) . Both corporations have achieved a great success on a planetary graduated table. FedEx Express presently serves 100s of metropoliss and markets with its intercontinental and international express services [ 1 ] . It founded in 1973 and has developed to function and make every corner of the universe. FedEx committed to offer the best services to client and prosecute the highest professional and ethical criterions. United Parcel Service. Inc. ( UPS ) began in 1907 as a courier company. Then. the company has developed into a multi-billion-dollar corporation. which concentrates on the end of enabling commercialism around the universe. Today. United Parcel Service Inc. is one of the most recognized and admired trade names in the universe.
It is a taking supplier of logistics. specialised transit. capital. and e-commerce services [ 2 ] . Both FedEx and UPS are frequently on ‘Fortune’ magazine’s list of the most admired planetary companies. Therefore. as two of the largest planetary messenger companies. theirs competition has ne’er ceased over the old ages. In this essay. ‘SWOT’ analysis method will be adopted to analyze the competition between United Parcel Service ( UPS ) and Federal Express Corporation ( FedEx ) . every bit good as to compare their advantages and disadvantages. Harmonizing to the article of FedEx Express SWOT analysis [ FedEx. 2004 ] . FedEx provides people with assorted services. such as logistics solutions. overnight courier services. and concern support services. The company’s retail concern is droved by powerful trade name image.
The powerful trade name image besides driving domestic grosss facilitates international enlargement as good. However. industry’s strong competitory landscape may exercise extra force per unit areas on the company’s operations and could adversely impact FedEx’s public presentation. Harmonizing to the article of United Parcel Service Inc. SWOT analysis [ 2004 ] . UPS is one of the largest planetary bundle bringing companies. The integrated planetary web and strong fiscal support of UPS enables the company to present sustainable concern growing and gaining control profitable chances across the universe. Here is a tabular array about the SWOT analysis of FedEx and UPS:
Federal Express Corporation ( FedEx )United Parcel Service. Inc. ( UPS )Strengthsa ) Powerful trade name imagea ) Integrated planetary webprovidesFailingsa ) Unfunded employeepost-retirement benefitsa ) High dependance on the US marketOpportunitiesa ) Network enlargementa ) Expansion of planetary health care webMenacesa ) Intense competitiona ) Intense competitionTable 1 [ FedEx & A ; United Parcel Service Inc. 2014 ]StrengthsFedEx has a powerful trade name image. As one of the world’s largest express transit companies. FedEx Express offers time-certain bringing to over 220 states and parts. linking markets that account for more than 90 % of the gross domestic merchandise of the universe [ FedEx. 2014 ] . In add-on. the company is amongst the most celebrated planetary express bringing services section. For case. during 2013. the company was ranked 6th in FORTUNE magazine’s World’s Most Admired Companies list. UPS is one of the largest planetary messenger companies. in footings of both income and volume. The company operates through an integrated planetary web and service portfolio. It provides broad scope of services that are delivered via its comprehensive land. air and ocean planetary web. The company deals with all degrees of service. such as air. land. domestic. international. commercial. and residential through a individual pickup and bringing service web. [ United Parcel Service Inc. 2014 ] Failings
FedEx has important unfunded pension duties. FedEx patron plans that provide retirement benefits to most of its employees. These plans include defined profit pension programs. defined part programs and post-retirement health care programs. In FY2012. the company’s pension duties stood at $ 22. 600 million as compared to the planned assets of $ 19. 433 million ensuing into an unfunded position of $ 3. 167 million. [ FedEx. 2014 ] UPS is extremely dependent on the US market for its income. In FY2013. the 75. 3 % of the company’s entire grosss comes from US. [ United Parcel Service. 2014 ] They to a great extent rely on the US markets. if the economic system and the company’s gross revenues in the US do non turn as expected. it could hold a negative consequence on the company’s grosss. Furthermore. the concentration of operations in this country increases UPS’ exposure to state specific factors such as alterations in raw-material monetary values. labour work stoppages. alterations in economic conditions. and most significantly. increasing competition from the low-cost merchandises. Opportunities
FedEx’s growing in concern public presentation relies to a great extent on the growing of its web enlargement. For case. FedEx Trade Networks launched its new operations in Dublin in June 2013. which complies with its enlargement schemes. Before this. FedEx already had 23 offices across European. [ FedEx. 2014 ] The constitution of Dublin offices marks the first clip that FedEx enters Ireland market. It enables clients with an enhanced entree to other markets with the company’s assortment of transportation and cargo services and solutions. UPS health care is now confronted with challenges in many degrees. On the one manus. its bing drug patens are bit by bit run outing its clip bound. On the other manus. it has to conform to the transforming ordinances required by governments of different states where they have operations. Many pharmaceutical companies are reforming their selling schemes to affect more substructures in order to battle these impacts. UPS received more demand inquiring for supply ironss keener and more suited under these new conditions. This displacement of schemes brings UPS more clients in pharmaceutical. biotech and medical device industries. Menaces
FedEx is faced with high degree of competition. peculiarly from UPS. The transit and concern services markets are non merely competitory. but are besides easy influenced by any alteration in monetary value or degree of service. This influence may be even more services in clip of economic stagnancy or low growing rate. FedEx has ever had some strong rivals. Some of the company’s rivals have more fiscal resources and are controlled or subsidized by foreign authoritiess. which enables them to raise capital more easy. UPS is subjected to dispute on many graduated tables. from local. regional. to national and international. Due to its diverse service portfolio. covering a rang from motor bearers. express companies. cargo forwards. air messengers. etc. it besides needs to vie with assorted other companies both within and outside of the US who provide the same type of services.
Some of the company’s rivals include FedEx. United States Postal Service. CH Robinson Worldwide. Expeditors International of Washington. Deutsche Post and etc. Competition may besides come from other beginnings in the hereafter. The SWOT analysis shows that both FedEx and UPS. as industry leaders. portion a strong characteristic of large companies. This is like the two sides of a coin. denoting both strengths and failing. UPS’s stiff concern construction saved it from the challenges presented by FedEx and many other rivals. but besides impedes it development in IT capablenesss. In add-on. both companies are threatened non merely by one another but by the possibility of new rivals come ining the bundle bringing sphere. which is highly competitory.